9.3 Star travel depreciates office equipment at the rate of 20% per annum using the straight line

desreciation method based on assets in existence at the vear-end which Is 31 December. Ine following

is extracted trm or nancia, osition as at 31

Accumulated

Net Book

Cost

Depreciation

Value

Office

Equipment

100,000.00 50,000.00

50,000.00

During the following year the company purchased two new items of office equipment costing $25,00C

and $35,000.

You are required to show the asset and accumulated depreciation accounts for the year as well as

extracts from the income statement and statement or financial position.